"how To" Start Trading The Forex Market?

What Is FOREX or FOREX MARKET? PART I
The Foreign Exchange market (also referred to as the Forex or FX
market) is the largest financial market in the world, with over
$15 trillion changing hands every day
That is larger than all US equity and Treasury markets combined!
Unlike other financial markets that operate at a centralized
location (ie stock exchange), the worldwide Forex market has
no central location It is a global electronic network of banks,
financial institutions and individual traders, all involved in
the buying and selling of national currencies Another major
feature of the Forex market is that it operates 24 hours a day,
corresponding to the opening and closing of financial centers in
countries all across the world, starting each day in Sydney,
then Tokyo, London and New York At any time, in any location,
there are buyers and sellers, making the Forex market the most
liquid market in the world
Traditionally, access to the Forex market has been made
available only to banks and other large financial institutions
With advances in technology over the years, however, the Forex
market is now available to everybody, from banks to money
managers to individual traders trading retail accounts The time
to get involved in this exciting, global market has never been
better than now Open an account and become an active player in
the largest market on the planet
The Forex Market is very different than trading currencies on
the futures market, and a lot easier, than trading stocks or
commodities
Whether you are aware of it or not, you already play a role in
the Forex market The simple fact that you have money in your
pocket makes you an investor in currency, particularly in the US
Dollar By holding US Dollars, you have elected not to hold the
currencies of other nations Your purchases of stocks, bonds or
other investments, along with money deposited in your bank
account, represent investments that rely heavily on the
integrity of the value of their denominated currency ¨the US
Dollar Due to the changing value of the US Dollar and the
resulting fluctuations in exchange rates, your investments may
change in value, affecting your overall financial status With
this in mind, it should be no surprise that many investors have
taken advantage of the fluctuation in Exchange Rates, using the
volatility of the Foreign Exchange market as a way to increase
their capital
Example: suppose you had $1000 and bought Euros when the
exchange rate was 150 Euros to the dollar You would then have
1500 Euros If the value of Euros against the US dollar
increased then you would sell (exchange) your Euros for dollars
and have more dollars than you started with
Example:
You might see the following:
EUR/USD last trade 15000 means One Euro is worth $150 US
dollars
The first currency (in this example, the EURO) is referred to as
the base currency and the second (/USD) as the counter or quote
currency
The FOREX plays a vital role in the world economy and there will
always be a tremendous need for the exchange of currencies
International trade increases as technology and communication
increases As long as there is international trade, there will
be a FOREX market The FX market has to exist so a country like
Germany can sell products in the United States and be able to
receive Euros in exchange for US Dollar
RISK WARNING:
Risks of currency trading
Margined currency trading is an extremely risky form of
investment and is only suitable for individuals and institutions
capable of handling the potential losses it entails An account
with an broker allows you to trade foreign currencies on a
highly leveraged basis (up to about 400 times your account
equity)The funds in an account that is trading at maximum
leverage may be completely lost if the position(s) held in the
account experiences even a one percent swing in value Given the
possibility of losing one’s entire investment, speculation in
the foreign exchange market should only be conducted with risk
capital funds that, if lost, will not significantly affect the
investors financial well-being

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